CHARLIE'S response to the Primestar deal:
EchoStar Communications Corporation's Chairman and CEO Charlie Ergen's response to Primestar partners restructuring and News Corp./MCI asset transfer EchoStar Communications Corporation's Chairman and CEO Charlie Ergen's response to Primestar partners restructuring and News Corp./MCI asset transfer June 11, 1997 9:10 PM EDT
ENGLEWOOD, Colo.--(BUSINESS WIRE)--June 11, 1997--Consumers across the country would object in mass if they understood Primestar Inc., a proposed comprehensive combination of the five largest cable companies in the world, including the largest content providers in the United States, with perhaps the most powerful media mogul.
It clearly is not in the public interest to give the single piece of real estate in space which is most capable of fostering effective competition to cable, to a cable and content cartel of unprecedented size and proportion.
This proposal, if permitted, would clearly result in even higher cable television rates and the consumer will continue to be held hostage to the powerful cable interests. This alliance will violate the spirit of the 1996 Telecommunications Act and the best intentions of President Clinton and Congress in passing what was intended to be comprehensive pro-competitive legislation.
The stark contrast with Rupert Murdoch's recent promise to Congress that he would: "offer consumers a full-fledged, satellite-delivered alternative to cable" is disturbing, and raises serious questions.
This transaction is obviously anti-competitive and anti-consumer. We are confident that the Federal Communications Commission, the Department of Justice, and the Federal Trade Commission, together with other federal and state regulators charged with protecting consumers, will reject this proposed alliance.
We trust that our leaders in Washington will not allow the "Big Cable Operator in the Sky" to deprive American consumers of a competitive choice.
EchoStar Communications Corporation (NASDAQ:DISH) intends to vigorously oppose this anti-competitive combination on many levels. EchoStar notes that in its pending litigation with News Corporation Ltd. ("News Corp.") in U.S. Federal Court in Denver, it has demanded damages and specific performance from News Corp. which prohibits News Corp. from completing the transaction with Primestar Inc. EchoStar is contractually entitled to use the 28 DBS frequencies at 110 degrees W.L. which News Corp. proposes to contribute to Primestar, Inc.
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